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Showing posts from December, 2017

Multibagger Stocks

OneBagger Stock Investment in Stock Market, which gives investor 100% return is defined as OneBagger.
TwoBagger Stock Investment in Stock Market, which gives investor 200% return is defined as TwoBagger.
MultiBagger Stock Investment in Stock Market, which gives investor multiple times return is defined as MultiBagger.
Multibagger is just an Investment Term which is used by market participants to describe a stock which gives investor multiple or impressive returns.
Examples* of MultiBagger stocks in India in 2015 and 2016 were: Symphony Limited: A return of more than 9,000% in the last 10 year (as on December 5, 2016)Uniply Industries: A return of more than 1400% in the last 1 year (as on 24 September 2015) Intrasoft Technologies: A return of more than 600% in the last 1 year (as on 24 September 2015) References for Examples*,

Income Tax Deduction under section 80GGC

Applicability All Assessees, other than local authority and artificial juridical person wholly or partly funded by Government
Deduction Allowed on Sum contributed to any political party/electoral trust
Amount of Deduction Entire Amount contributed is allowed as Deduction Condition of Deduction Contribution shall be made in any form other than cash.
Deduction shall not be allowed if amount is contributed in cash.

Income Tax Deduction under section 80GGB

Applicability Indian Company Deduction Allowed on Sum contributed to any political party/electoral trust
Amount of Deduction Entire Amount contributed is allowed as Deduction Condition of Deduction Contribution shall be made in any form other than cash.
Deduction shall not be allowed if amount is contributed in cash.

Income Tax Deduction under section 80GGA

Applicability All assessees excluding income chargeable under the head 'Profits and Gains of Business or Profession'
Deduction Allowed on Certain donations for scientific, social or statistical research or rural development program or for carrying out an eligible project or scheme or National Urban Poverty Eradication Fund
Amount of Deduction Equal  to  the  amount  of  donation  or  contribution:
Donation to notified scientific research association as per Sec 35Donation to notified institution for the purpose of eligible project as per Sec 35ACDonation to notified  institution  for  rural  development  or  to  national  urban poverty eradication fund as per Sec 35CCA

All About Goods and Services Tax (GST)

What is GST?GST stands for Goods and Services Tax. GST is an Indirect Tax. GST is a Dual Tax model.Dual Tax model means taxation is managed by Union and State Government.GST is paid to the state where Goods or Services consumed not the state where they were produced.In India, GST was came in force from 1st July 2017 and applicable throughout India except J&K. Jammu and Kashmir Legislature passed its GST Act on 7th July 2017.Entire nation is brought under GST (with motto, One Nation One Tax)GST council is framed to govern GSTGST chairman is Financial Minister of India. Structure of Indirect Tax in India EarlierCentral Tax
Duty on Imports - Custom DutyDuty on Manufacturing - Excise DutyTax on Services - Service TaxState Tax
Tax on Sale - Sales Tax or Value Added Tax (VAT)Local Levy - Entry Tax or Octroi Tax on Entertainment - Entertainment Tax NowGoods & Services Tax (GST) Central Goods and Service Tax (CGST)State Goods and Service Tax (SGST)Union Territory Goods and Service Tax (…

All About Tax Deduction and Collection Account Number (TAN)

What is TAN?​ TAN stands for Tax Deduction and Collection Account Number is a 10-digit alphanumeric number issued by Income Tax Department. TAN is to be obtained by all persons who are responsible for deducting tax at source or collecting tax at source.​
What Does ten-digit alphanumeric number of TAN represents? Let us assume TAN allotted to Mr. Nikhil of Delhi.
Then it may appear as "DEL N 12345 H" First 3 alphabets of TAN represent the jurisdiction codeFourth alphabet is initial of the Name of the TAN holderIt can be a company, firm, individual, etcThe next 5 digits of TAN are numericLast digit is an alphabet.  Who must apply for TAN?As per section 203A of the Income-tax Act, 1961, every person who deducts or collects tax at source has to apply for the allotment of TAN.Section 203A also makes it mandate to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan, TDS/TCS certificates and other documents as may be prescribed. Why applying fo…

Advance Tax

Who should pay advance tax? As per section 208 of Income Tax Act 1961, every person whose estimated tax liability for the year exceeds Rs. 10,000, shall pay his tax in advance, in the form of “Advance Tax”.
In other words, Advance Tax is payment of the Income Tax in equal parts throughout the year, rather than paying the lump-sum tax amount at the end of the year.
Who may not require to pay Advance Tax A Resident Individual whose age is 60 years or above during the relevant financial year not having any income from Business or Profession is not liable to pay Advance Tax.
Due Dates for the payment of Advance Tax For Individual and Corporate Tax payers Due date on or before 15th June - 15% of Advance TaxDue date on or before 15th September - 45% of Advance TaxDue date on or before 15th December - 75% of Advance TaxDue date on or before 15th March - 100% of Advance Tax For taxpayers who have opted for Presumptive Taxation Scheme (Business Income)
Due date on or before 31st March - 100% of…

Income Tax Deduction under section 80C

Applicability Individual or HUF
Deduction Allowed onPremium Life insurance premium for policyIn case of individual, on life of assessee, assessee spouse and any child of assesseeIn case of HUF, on life of any member of the HUFSum paid towards notified annuity plan of LIC or other insurerDeferred Annuity
Sum paid under a contract for a deferred annuityIn case of individual, on life of the individual, individual's spouse and any child of the individualIn case of HUF, on life of any member of the HUFSum deducted from salary payable to Government servant for securing deferred annuity or making provision for his wife/children [qualifying amount limited to 20% of salary]Provident Funds
Contributions by an individual made under Employees' Provident Fund SchemeContribution to Public Provident Fund Account in the name ofIn case of individual, such individual or his spouse or any child of such individualIn case of HUF, any member of HUFContribution by an employee to a recognized provident…

Income Tax Deduction under section 80GG

Applicability Individual
Deduction Allowed on Rent Paid by Individual not receiving any House Rent Allowance (HRA) Conditions for DeductionIndividual do not received HRA at any time during the year for which he is claiming 80GGIndividual (Including spouse, minor child or HUF) do not own any residential accommodation at the place where he currently reside, perform duties of office, or employment or carry on business or profession.In case he own any residential property at any place other than his work place, then no deduction under section 80GG is allowed.Individual will be required to file Form 10BA with details of payment of rent. Amount of Deduction The lowest of these will be considered as the deduction under this section-
Rs 5,000 per month25% of total Adjusted Gross Total IncomeActual Rent minus 10% of Adjusted Gross Total IncomeCalculations Adjusted Gross Total Income to exclude long term capital gain, short term capital gain under section 111A and Income under section 115A or 1…

Income Tax Deduction under section 80G

Applicability All Assesses
Deduction Allowed on Donations towards Contribution to Social Causes
Amount of Deduction The various donations specified in Section 80G are eligible for deduction up to either 100% or 50% with or without restriction as provided in Section 80G.
Details of DeductionDonations with 100% deduction without any qualifying limit:
National Defense Fund set up by the Central GovernmentPrime Minister’s National Relief FundNational Foundation for Communal HarmonyAn approved university/educational institution of National eminenceFund set up by a State Government for the medical relief to the poorNational Illness Assistance FundNational Blood Transfusion Council or to any State Blood Transfusion CouncilNational Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple DisabilitiesNational Sports FundNational Cultural FundFund for Technology Development and ApplicationNational Children’s FundChief Minister’s Relief Fund or Lieutenant Governo…

Income Tax Deduction under section 80EE

Applicability Individual
Deduction is Allowed on Interest Amount of Home Loan
Amount of Deduction Maximum deduction amounted to Rs. 50,000
Conditions This is the 1st house that individual have purchasedValue of this house is not more than Rs 50 lakhs Loan taken for this house do not exceed Rs 35 lakhs Loan should be sanctioned by a Financial Institution or a Housing Finance CompanyAs on the date of sanction of loan no other house is owned by Individual

Income Tax Deduction under section 80E

Applicability Individual
Deduction is Allowed on Interest Amount of Education Loan for pursuing Higher Studies
Amount of Deduction The deduction is available for a maximum of 8 years or till the interest is fully paid, whichever is earlier. There is no restriction on the amount that can be claimed.
Conditions Education Loan can be taken for the taxpayer, spouse or children or for a student for whom the taxpayer is a legal guardian.

Income Tax Deduction under section 80DDB

Applicability Resident Individual or HUF Deduction is Allowed on Medical Expenditure (Self or Dependent Relative) of Specified Disease
Amount of DeductionA deduction of Rs. 40,000 or the amount actually paid, whichever is lessIn case of Senior Citizen, A Deduction of Rs 60,000 or amount actually paid, whichever is less.In case of Super Senior Citizens, A Deduction of Rs 80,000 is the maximum deduction that can be claimed. Conditions The diseases have been specified in Rule 11DD.
A certificate in form 10I is to be furnished by the taxpayer from any Registered Doctor.
With effect from Assessment Year 2016-17, the taxpayer shall be required to obtain a prescription from a specialist doctor (not necessarily from a doctor working in a Government hospital) for availing this deduction.

Income Tax Deduction under section 80DD

Applicability Individual or HUF
Deduction is Allowed on Rehabilitation of Handicapped Dependent Relative
Amount of DeductionIf disability is not less than 40% but do not exceed 80%. Deduction Fixed Amounted to Rs. 75,000If disability is more than 80% (severe disability). A certificate of disability is required from prescribed medical authority.Deduction Fixed Amounted to Rs. 1,25,000. ConditionsDeduction is allowed for a dependent of the tax payer and not the tax payer himself/herself.The taxpayer cannot claim Deduction Under Section 80DD, if the dependent has claimed a Deduction Under Section 80U for himself/herself.Dependent in case of an individual taxpayer means spouse, children, parents, brothers & sisters of the taxpayer. In case of HUF, Members of the HUF.The taxpayer has incurred expenses for medical treatment (including nursing), training & rehabilitation of Dependent.Tax payer may have deposited in a scheme of LIC or another insurer for maintenance of the Dependent.

Income Tax Deduction under section 80D

Applicability An Individual or HUF
Deduction Allowed on Medical Insurance Premium and Preventive Health Checkup Conditions Premium Amount paid (in any mode other than cash) by an individual or HUF to LIC or other insurer to effect or keep in force an insurance on the health of specified person.
specified person means:In case of Individual - self, spouse, dependent children or parentsIn case of HUF - Any member thereof An individual can also make payment to the Central Government health scheme and/or on account of preventive health check-up (From AY 2016-17, within the existing limit a deduction of up to Rs. 5,000 for preventive health check-up is available). Payment on account of preventive health check-up may be made in cash.
Amount of Deduction For IndividualFor self, spouse and dependent children : Rs. 25,000 (Rs. 30,000 if person insured is a senior citizen or Super Senior Citizen)For parents of the assessee : (Additional) Rs. 25,000 (Rs. 30,000 if person insured is a Senior Citiz…

Income Tax Deduction under section 80CCD

Applicability Individual
Section 80CCD(1) Deduction is Allowed on Contribution towards Pension Scheme of Central Government.
Amount of Deduction 10% of salary in case the taxpayer is an employee, or
20% (From FY 2017-18) of Gross total income in case the taxpayer being self-employed.
Section 80CCD(1B) Deduction is Allowed on Employee's Contribution towards National Pension Scheme or Atal Pension Yojna.
Amount of Deduction Deduction to the extent of Rs. 50,000. The additional deduction is not subject to ceiling limit of Rs. 1,50,000 as provided under Section 80CCE.
However, it is to be noted that addition deduction of Rs. 50,000 shall not be allowed in respect of contribution which is considered for deduction under Section 80CCD(1).
Section 80CCD (2) Deduction is Allowed on Employer’s contribution towards National Pension Scheme
Amount of Deduction Additional Deduction is allowed for employer’s contribution to employee’s pension account of up to 10% of the salary of the employee. The…

Income Tax Deduction under section 80CCC

Applicability An Individual
Deduction is allowed on Contributions towards certain Pension Funds
Amount of Deduction Up to Rs. 1,50,000 - subject to certain conditions
Condition Section 80CCE provides that the aggregate amount of deductions under section 80C, section 80CCC and section 80CCD(1) shall not, in any case, exceed Rs. 1,50,000
Note deduction is claimed under this section, deduction in relation to same amount cannot be claimed under section 80C

All about Permanent Account Number (PAN)

What is PAN? A PAN is a ten-digit unique alphanumeric number issued by the Income Tax Department. PAN is issued in the form of a laminated plastic card.
What does ten-digit unique alphanumeric number of PAN represents? Let us assume PAN number to be “ABCDE1234F
First three characters represent the alphabetic series running from AAA to ZZZ.The fourth character of PAN represents the status of the PAN holder."P" stands for Individual"C" stands for Company"H" stands for Hindu Undivided Family (HUF)"A" stands for Association of Persons (AOP)"B" stands for Body of Individuals (BOI)"G" stands for Government Agency"J" stands for Artificial Juridical Person"L" stands for Local Authority"E" stands for Limited Liability Partnership"F" stands for Firm"T" stands for TrustFifth character of PAN represents the first character of the PAN holder's last name/surname in case of an individua…

4 Reasons Why Every Professional Should Have A Personal Website

Build Your Own Personal PortfolioWebsites give’s you a chance to talk about your interests and experiences in a way that is difficult to do on a resume(CV), and gives visitors (Recruiters) a number of chances to make those important connections with you.Virtual Resume is most effective way to represent your Work or Experience. Also it make you stand out of crowd and give you a chance to represent yourself in a different and attractive manner. Website reflects A Strong Professional MessageProfessionals, Authors, Musicians, Politicians, and other Personalities use websites to raise their profiles and provide a place to showcase their careers and work.Having your own website sends a great message that you care about your professional image, and having good, relevant content in your website shows you put time and thought into your job. It Gives You More Control over Your Online PresenceA website will make you more visible in search engine results.People searching for you by name or peopl…

4 Reasons why you should not Invest in BitCoins or Cryptocurrencies

High volatile - No one know what happen Next  Investing in Cryptocurrencies attracts very high risk, as prices have been extremely volatile.
Bitcoin is a Neither Commodity Nor Currency  The lack of clarity about Cryptocurrency origin is another big issue related to bitcoin.
Cryptocurrencies are not gold, silver, etc. nor it is currency of any Country.
No Legal Status Cryptocurrencies are not recognized by the Reserve Bank of India (RBI) or any other authority in India, as a ‘currency’. It is not controlled by any Government Agency and not Regulated by any Government Entity so there is no scope of Grievance Redressal in Cryptocurrencies.
Subject to Illegal Activities Due to the lack of government control, terrorists and extortionists can misuse the Cryptocurrency for their advantage. Cyber-criminals (terrorists or extortionists) hide their identity, so it can be difficult for Government Authorities and Companies to trace such illegal activities.